The $25/Day Minimum (And Why It Exists)
Facebook's algorithm needs data to optimize. Below $25/day, your campaigns don't generate enough conversions for the algorithm to learn who your ideal prospect is. You end up paying more per lead because the system is guessing.
$25/day ($750/month) is the floor. Below that, you're not really running ads — you're donating to Meta.
What Good Benchmarks Look Like
Across 500+ gym accounts we manage at LASSO, here's what healthy numbers look like:
- Cost per lead (CPL): $10-$20 for a quality lead who books a consultation
- Cost per acquisition (CPA): $50-$150 for a new member who signs up
- Return on ad spend: 3x minimum — every $1 in ads should generate $3+ in front-end revenue within 60 days
- Lead-to-show rate: 40-60% of booked consultations should actually show up
- Close rate: 60-80% of people who show should sign up
The 3x Rule for Scaling
Once your funnel is dialed in (CPL under $20, close rate above 60%), the math for scaling is straightforward: every additional $1,000/month in ad spend should generate $3,000+ in new member revenue.
Most of our clients invest $2K-$5K/month in ad spend. At a $15 CPL, that's 130-330 leads per month. With a 50% show rate and 70% close rate, that's 45-115 new consultations and 30-80 new members.
When to Increase Your Budget
Scale when all three conditions are met:
- Your CPL has been stable for 2+ weeks
- Your sales team can handle the current lead volume (speed to lead under 5 minutes)
- Your close rate hasn't dropped below 60%
If any of those slip, fix the bottleneck before adding more budget. More leads into a broken funnel just means more wasted money.
The Real Question Isn't "How Much?" — It's "Is My Funnel Ready?"
Budget is a function of your funnel's efficiency. A gym with a 80% close rate can profitably spend $5K/month. A gym with a 30% close rate will lose money at $500/month. Fix the funnel first, then scale the spend.